MEMORANDUM IN OPPOSITION
Date: May 2010
Bill: A6647-A (Carrozza)
Act to amend the insurance law and public health laws by requiring
insurers to provide certificate holders with at least thirty days prior
written notice of termination of group health insurance coverage.
The Employer Alliance for Affordable Health Care is a grassroots
coalition of more than 3,000 sole proprietors and small and medium-sized
business owners who represent more than 150,000 working New Yorkers.
Our members believe that everyone should have access to basic,
affordable health insurance. We oppose health insurance mandates that
increase premium costs and decrease accessibility of basic, affordable
health insurance. This bill seeks to amend existing law by requiring
written notice to consumers upon termination of group health insurance.
WE OPPOSE THIS LEGISLATION FOR THE FOLLOWING REASONS:
- Health care costs are among the greatest concern of most small
business owners, according to an annual survey conducted by the National
Federation of Independent Business. While the intention of this
regulation is to protect consumers, the ultimate impact could
realistically be increased business costs passed on by carriers through
additional fees and assessments. Furthermore, this bill will unduly
penalize small businesses that forced to cancel their policies as a
result of high costs by assessing the additional expense of
notification. As small businesses struggle to absorb annual double-digit
premium increases, the best course of action that could taken by New
York State to protect consumers would be “do no harm” in terms of any
types of any new fees, assessments or regulations such as this which
could impact premiums.
- The face of health insurance is changing in light of current
federal reform. Rather than creating new regulations and adding further
confusion to an already complex problem, the New York Legislature should
allow the federal government to take the lead, adopting a “wait and
see” attitude to determine whether this type of regulation is being
For these reasons, the Employer Alliance for Affordable Health Care asks you to oppose A6647-A.
The Employer Alliance for Affordable Health Care is a
coalition of more than 3,400 employers and individuals from across New
York, representing more than 200,000 working New Yorkers, committed to
preserving quality affordable health care.